Child Tax Credit in Maryland (2025): How Much You Get and How to Claim It?

Child Tax Credit in Maryland, Raising children in today’s economy can be financially overwhelming. For thousands of Maryland families, the Child Tax Credit (CTC) serves as a vital lifeline, helping ease the cost of raising children, affording childcare, and even covering basic living expenses.

In 2025, both the federal and Maryland state governments offer generous child tax credits to help parents. This guide breaks down how much you can get, who qualifies, how to claim it, and how to make the most of your refund—especially if you’re living in cities like Baltimore, Silver Spring, or Annapolis.

What is the Child Tax Credit?

The Child Tax Credit (CTC) is a tax benefit that reduces your federal income tax liability for each qualifying child under age 17. The credit originated to support working families with children, and in recent years, it’s expanded to offer more refundable cash—even for low-income families.

In Maryland, parents may qualify for:

A federal Child Tax Credit of up to $2,000 per child, and
A Maryland State refundable child tax credit, which can offer up to $500 per child (for certain low-income taxpayers).

This combination can put thousands of dollars back into your pocket during tax season.

Maryland’s Role in the Child Tax Credit

While the federal government administers the main Child Tax Credit, Maryland has created its own supplemental version to support state families.

The Maryland Child Tax Credit, effective until at least 2027, provides up to:

$500 per child under age 17, for families earning $6,000 or less annually.
It’s refundable, meaning you can receive the full amount even if you owe zero taxes.

This policy especially supports families in poverty or with limited work opportunities, ensuring no child gets left behind.

Eligibility: Who Qualifies for the Child Tax Credit in Maryland?

✅ To qualify for the federal Child Tax Credit (CTC) in 2025, you must:

Have a qualifying child under the age of 17 at the end of 2025.
The child must have a valid Social Security Number.
The child must live with you for more than half the year.
You must claim the child as a dependent on your tax return.
You must have some earned income (exceptions for certain benefits apply).

✅ To qualify for the Maryland State Child Tax Credit, you must:

Have a dependent under age 17.
Have federal adjusted gross income (AGI) of $6,000 or less.
Live in Maryland for at least 183 days of the tax year.

Income Limits for Child Tax Credit 2025

📌 Federal Phase-Out Thresholds (2025):

$400,000 for married couples filing jointly.
$200,000 for single filers or head of household.

Once your income exceeds these thresholds, your credit begins to reduce by $50 for every $1,000 above the limit.

📌 Maryland Income Cap:

Only families with less than $6,000 in income qualify for the state-level $500 refundable credit.

While that sounds restrictive, many low-income households, such as part-time workers or single parents, qualify each year.

How Much is the Child Tax Credit in 2025?

🔹 Federal Child Tax Credit:

Up to $2,000 per child under 17.
$1,600 of this amount is refundable (meaning you could receive it as cash if your tax liability is $0).

🔹 Maryland State Child Tax Credit:

Up to $500 per child if income is $6,000 or less.
Fully refundable for eligible filers.

This means a family with two children could get:

$4,000 from the federal CTC, plus
$1,000 from the Maryland CTC,
Totaling $5,000 in credits.

Real-Life Example: The Johnson Family in Baltimore, MD

Meet the Johnsons, a family of four living in Baltimore:

Married couple filing jointly
2 children under age 10
Total income: $45,000
Federal tax liability: $500

Federal Credit:

$2,000 x 2 = $4,000
$500 used to eliminate tax liability
$1,600 is refundable, per child → $3,200

Maryland Credit:

Not eligible (income > $6,000)

Total Refund: $3,700

If their income was $5,500, they would also receive:

$500 x 2 = $1,000 from the state

Total Refund: $4,700

How to Claim the Child Tax Credit in Maryland

Claiming the CTC involves two forms:

✅ Federal:

File IRS Form 1040
Attach Schedule 8812 to calculate the CTC and Additional CTC

✅ Maryland State:

File Form 502 (Maryland resident income tax return)
Fill out the state-specific child tax credit section

Pro Tip: If you use tax software like TurboTax, H&R Block, or Free File, the forms are automatically included.

What About Families with No Income?

Families with no or very low income may still receive refundable portions of the CTC:

Federal Additional Child Tax Credit: You can receive up to $1,600 per child even if you owe $0 in taxes.
Maryland Refundable CTC: Available only if your income is under $6,000.

This is a powerful support tool for single mothers, part-time earners, or those temporarily unemployed.

In addition to the CTC, you may qualify for:

🔹 Earned Income Tax Credit (EITC):

Up to $7,430 federally, depending on family size.
Maryland offers 50% of the federal EITC as a refundable credit.

🔹 Child and Dependent Care Tax Credit:

Helps pay for childcare or after-school programs.
Maryland has a separate deduction for childcare expenses.

🔹 Head of Household Filing Status:

Larger standard deduction and lower tax brackets if you’re a single parent.

Tips for Maximizing Your Credit (2025)

File Early: Start filing in January to get refunds sooner.
Use Direct Deposit: Fastest way to receive your refund.
Claim All Children: Ensure you claim every eligible dependent.
Use Free Filing Services: IRS Free File or local VITA sites.
Track Your Income: Stay below key thresholds to avoid phase-outs.
Check State Eligibility Annually: Maryland CTC eligibility is strict, so reapply if your income drops.

Final Thoughts: The CTC is More Than a Credit—It’s a Lifeline

For Maryland families, the Child Tax Credit in 2025 can provide more than just tax relief—it’s a chance to catch up on bills, buy school supplies, or even secure childcare so you can go back to work.

Between the federal credit and Maryland’s supplemental support, eligible families can receive thousands of dollars in refunds. It’s critical to file correctly, claim every eligible child, and understand your income’s effect on benefits.

20 FAQs on Child Tax Credit by Maryland (2025): What Every Parent Must Know

The Child Tax Credit (CTC) in 2025 continues to be one of the most valuable tax benefits for Maryland families. With both federal and Maryland state-level support, parents can potentially receive thousands of dollars in refunds—whether they owe taxes or not.

In this post, we break down 20 frequently asked questions (FAQs) about the Child Tax Credit in Maryland for 2025, giving you clear answers, legal insights, and practical examples.

1. What is the Child Tax Credit (CTC) in 2025?

The Child Tax Credit is a tax benefit offered by the IRS and supplemented by some states like Maryland to help families with the cost of raising children. In 2025, it provides:

Up to $2,000 per child (federal),
Plus up to $500 per child (state level, Maryland-specific for low-income families).

2. Does Maryland offer its own Child Tax Credit?

Yes. Maryland offers a refundable Child Tax Credit for low-income taxpayers:

Up to $500 per child under 17
For families with a federal adjusted gross income (AGI) of $6,000 or less

This is separate from the federal CTC and aims to support very low-income families in the state.

3. Who qualifies for the federal Child Tax Credit in Maryland?

To qualify federally in 2025:

Your child must be under 17 years as of Dec 31, 2025.
They must have a valid Social Security Number.
You must be their primary caregiver and claim them as a dependent.
Your income must be below phase-out thresholds.

4. What are the income limits for the federal CTC in 2025?

The federal CTC begins phasing out at:

$200,000 for single or head-of-household filers
$400,000 for married filing jointly

Above these limits, your credit reduces by $50 for every $1,000 over the threshold.

5. What are the income limits for Maryland’s Child Tax Credit?

Maryland’s refundable credit is for extremely low-income families:

Adjusted gross income must be $6,000 or less
It applies regardless of tax liability

6. Can I receive the credit even if I don’t owe taxes?

Yes. Both the federal and Maryland credits are refundable to varying degrees:

Federal Additional CTC offers up to $1,600 per child (refundable portion).
Maryland’s full $500 credit is refundable if eligible.

7. How do I claim the Child Tax Credit on my taxes?

You claim it by:

Filing IRS Form 1040 and attaching Schedule 8812
On Maryland returns, use Form 502 to report your eligibility for the state credit.

8. Do part-time workers or single parents qualify?

Yes. As long as you meet the income and child requirements, part-time workers and single parents are eligible. Maryland’s low-income requirement may even prioritize them.

9. Is the Maryland Child Tax Credit permanent?

Currently, the Maryland refundable CTC is extended through tax year 2027 under state law. However, it is subject to review by the legislature.

10. Can I get both the federal and Maryland Child Tax Credit together?

Yes. You can qualify for both. For example:

Federal: $2,000 per child
Maryland: $500 per child (if under $6,000 income)

Combined, that’s $2,500 per child.

11. What if my child was born in 2025?

You can claim a newborn child for the CTC as long as they meet other qualifications:

Lived with you the remainder of the year
Has a Social Security Number
Claimed as a dependent

12. What if I have multiple children?

You can claim the credit for each qualifying child. So, if you have 3 kids under 17 and meet the income criteria:

Federal: 3 × $2,000 = $6,000
Maryland: 3 × $500 = $1,500 (if qualified)

13. Is the CTC only for biological children?

No. You may claim:

Biological children
Stepchildren
Adopted children
Foster children (if placed by an authorized agency)
Siblings or grandchildren (if they live with you and meet IRS criteria)

14. How is the refundable portion of the CTC calculated?

The refundable federal CTC (Additional CTC) equals up to $1,600 per child in 2025. It’s based on your earned income over $2,500.

Maryland’s refundable credit is a flat $500 per child, available even if you owe $0.

15. What’s a real-life example of a Maryland family receiving CTC?

Let’s say the Thompson family in Baltimore:

Two children (ages 5 and 12)
Income: $5,500

They could receive:

Federal CTC: 2 × $2,000 = $4,000
(of which $3,200 is refundable)
Maryland CTC: 2 × $500 = $1,000

Total refund = $5,000+

16. Do I have to apply separately for Maryland’s CTC?

No. When you file your Maryland state tax return (Form 502) and meet the income requirements, the credit will be calculated automatically.

17. Can non-citizen children qualify?

Only children with valid Social Security Numbers (SSNs) qualify. ITINs (Individual Taxpayer Identification Numbers) are not eligible for the federal CTC. Maryland follows federal guidelines on child identity.

18. What documents do I need to claim the credit?

To claim the CTC, gather:

Social Security Numbers for all children
Proof of residence (school, medical, lease documents)
Tax forms (W-2, 1099, etc.)
Maryland residency proof (utility bill, ID)

19. How can I maximize my Child Tax Credit refund in 2025?

Tips include:

File early and electronically
Use free tax help (VITA or IRS Free File)
Keep accurate income records
Claim all eligible dependents
Stay under income phase-out limits

20. Where can I get help with filing for the Child Tax Credit in Maryland?

Free resources include:

IRS Free File Program
Maryland CASH Campaign (mdcash.org) for free tax assistance
Volunteer Income Tax Assistance (VITA) sites

You can also hire a tax professional to ensure you receive every dollar you deserve.

Final Words: Don’t Leave Money on the Table

The Child Tax Credit in Maryland (2025) can mean thousands in real money—especially for families navigating tight budgets. If you have eligible children and meet the income criteria, be proactive, file early, and maximize your benefits.

It’s not just a credit—it’s financial security for your family.

Bycsannusharma

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